5. business

• What are the two main types of business organisations?

  Public and private sector organisations
• What is the purpose of public sector organisations?

  To benefit the whole nation
• Give an example of a public sector organisation.

  Animal and Plant Health Agency
• How are private sector organisations owned and controlled?

  By an individual or group
• What is the main purpose of private sector organisations?

  Generating profit from activities
• What are the classifications of businesses based on size?

  Micro, small, medium, large
• What is a sole trader?

  A person who owns a business alone
• What is a partnership?

  An arrangement between two or more people
• What is a cooperative business?

  Owned and controlled by its members
• What is a limited company?

  A business where liability is limited to assets
• What is a franchise?

  Licensing operations and branding to others
• What are not-for-profit organisations?

  Organisations with social or political aims
• What are the main types of not-for-profit organisations?

  Registered charities, voluntary groups, NGOs
• What is the liability of a sole trader?

  Liable for all losses of the business
• What is the difference between ordinary and limited partnerships?

  Ordinary has equal authority; limited does not
• What are the three types of partnerships?

  Ordinary, limited, and liability partnerships
• What is a mission statement?

  A declaration of an organisation's purpose
• What is corporate social responsibility (CSR)?

  Creating social benefits while achieving profit
• What does the triple bottom line refer to?

  Profit, people, planet
• What are key performance indicators (KPIs)?

  Quantifiable measures of performance
• What is the purpose of financial management in a business?

  To evaluate impact of financial decisions
• What is the difference between unincorporated and incorporated entities?

  Unincorporated lacks separate legal personality
• What is a charity's restriction regarding profit?

  Charities are not allowed to earn profit
• What are the types of business risks?

  Financial, reputational, compliance, operational
• What is credit risk?

  Risk of customers defaulting on payments
• What is operational risk?

  Financial issues from daily business activities
• What is reputational risk?

  Risk from cyber attacks or product quality issues
• What is compliance risk?

  Risk of breaching laws and regulations
• What is economic risk?

  Changes affecting a company's ability to trade
• What is fraud risk?

  Misrepresentation of intentions or actions
• What is strategic planning in risk management?

  Identifying risks and planning responses
• What are the stages of project management?

  Initiating, planning, executing, closing
• What is the purpose of a project scope?

  Determines goals and workflow management
• What is a service level agreement (SLA)?

  A document outlining service commitments
• What are the three types of SLAs?

  Customer, internal, multilevel
• What is the impact of quality standards on a business?

  Ensures reliability and compliance with rules
• What are the benefits of KPIs?

  Aligns priorities and motivates staff
• What is the importance of customer feedback?

  Enables improvements and enhances satisfaction
• How can customers influence a business's reputation?

  Through word of mouth and social media
• What are the main types of business organisations?

  • Public sector organisations
  • Private sector organisations
  • Not-for-profit organisations